HRMG1021 Unit-5 K.

Rakshit

HRMG (1021) Human Resource Management

Unit-5 Separation and Maintenance
Separation and Maintaining: Communication and Counseling - Safety and Health –
Internal mobility - Retirement and Retirement bene ts.

5.1 Separation
Employee Separation is the discontinuation of his employment contract with the
company. The termination of employees’ services can be voluntary or involuntary. This
can take the form of Retirement, Resignation, Discharge, Layo , etc. The companies and
employees must specify valid reasons behind separation. The process may be upsetting
for both, the company and its employees. Hence, the employee separations should be
planned and reasonable.

According to Yoder, separation is negative recruitment. It may be In the form of

resignation, dismissal or discharge, suspension, retrenchment or lay-o .

Types of Employee Separation:

Either employer or employee may propose separation due to several reasons. Employee
separation can be classi ed into:

• Voluntary Separations

• Involuntary Separations

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Voluntary Separation:
Here, the employee discontinues his services with his own consent in the organization.
The most common forms of voluntary separation are:

1. Resign or Quit

2. Retirement

Resign or Quit:
The employee may quit his job due to personal or professional reasons. It may a ect the
goodwill of the company when it occurs often. The employee may leave because of
reasons like:

• Better Career Opportunities

• Company Policy

• Health

• Relocation

• Job Dissatisfaction, etc.

Retirement:
Retirement is the completion of employees occupational tenure. This involves
discontinuation of service as the employee reaches the age of retirement.

The employees themselves take retirement from the organization through voluntary
retirement. Generally, the age of retirement is 60 years. Unlike resignation in retirement,
employees gain certain bene ts like:-

• Lump-Sum Payment

• Pension

• Leave Encashment

• Gratuity, etc
Retirement can be of two types:

• Compulsory Retirement

• Voluntary Retirement Scheme

Involuntary Separation:
Here, the employer terminates the services of their employees due to organizational
reasons. The organizations may opt for employee separation because:

• They may face ups and downs in the business cycle

• Di culty in handling the workforce

• Unprofessional behaviour of the employees

The di erent types of involuntary separation are:

1. Discharges and Dismiss

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2. Layo s

3. Retrenchment

4. Downsizing and Rightsizing

5. Compulsory Resignation

Discharges and Dismiss

Discharge is an involuntary separation in which the organization ceases employee

services. The discharge of the employee might be due to his non-productivity. While
discharging, an employee may get o ended. It must be a thoughtful decision and
adopted in only extreme cases. It may be a product of:

• Job Mis t

• Bad Organizational Behaviour

• Absenteeism

Dismissal is the termination of the employee resulting from his non-performance or

misconduct. It is the last step the management takes as a punishment to the employee. It
may impose adverse e ects on employees’ career opportunities in future.

Layo s: A Layo is when an organization separates their employees for a short stretch of
time. The organization recalls the employees after the layo period is over. The objective
of laying o the workforce is to make the rm lean in shape and remain competitive.

Retrenchment: In this, organizations need to separate employees permanently due to

economic reasons. The organizations may not recall employees. But they can prefer
retrenched workers at the time of vacancies.

Downsizing and Rightsizing: The organizations restructure themselves by downsizing

and rightsizing their workforce. Rightsizing includes cost-saving and adjusting the crew to
exact t. The organization may cut costs by part-time work, reduced wages, reduced
workweeks, etc.

Compulsory Resignation: The employer may ask its employee to leave the organization
or resign. The organizations opt for obligatory resignation in critical situations and avoid
dismissal.

Bene ts of Employee Separation:

To Organizations

• It enables a reduction in labour costs

• Replacement of the poor performers

• It increases opportunities for diversi cation and enhancement

• New recruits bring synergy to the organization

• Results in a disciplined work environment

• Reshape organization into the right size

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To Employees

• Better career opportunities

• Get away from a troublesome workplace

• Enjoy bene ts associated with retirement schemes

Employee Separation Procedure:

1. Noti cation: Both the company and the employee may send a noti cation to the HR
department. The noti cation addresses the request or decisions about separation. It
speci es the following details:

a. Identity of the employee

b. A valid reason for separation

c. On the nal day of work

2. Termination Checklist: The manager must collect data, documents, and properties
from the employee. He must complete and submit the termination checklist.

The manager handovers the collected stu to the respective departments. This
process takes place on the employee’s nal working day.

3. Final Payment: Employee submits no dues to the nance department, after

completing the necessary documentation.

The nance department will disburse the nal payment to the employee.

Managing Separation:
• Separation takes place in every organization, either voluntary or involuntary. It
possesses certain bene ts and carries some costs. The organizations must aim to
reduce costs and amplify the associated bene ts.

• Dysfunctional turnover occurs when the positive employees in your company are
voluntarily leaving at higher rates than the weaker workers. Often, this is considered
dysfunctional on the basis of the e ect it has on your capital. In short, this means it
costs more to keep recruiting and training new employees than it does to retain the
most valuable performers.

• Functional turnover means poor performers are leaving your organization.

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Any separation relies upon employees’ performance and replaceability. The preparation of
the Performance-Replaceability Strategy Matrix depends on the above elements.

This model places employees in six cells depending on their performance and
replaceability. These cells show problematic or fruitful turnover. Also, they display suitable
strategies for managing each turnover. The strategies may include Retention or
Termination.

Organizations usually retain high-performing employees. Formulation of retention

strategies for such employees are:

1. More career development opportunities

2. Customized incentives based on performance

3. Backup for the employees who are hard to replace

The organization terminates the employee with low performance and easy replacement. It
results in cutting costs and a leaner organizational structure.

5.2 Communication
Communication is a vital management component to any organization. Whether the
purpose is to update employees on new policies, to prepare for a weather disaster, to
ensure safety throughout the organization or to listen to the attitudes of employees,
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e ective communication is an integral issue in e ective management. To be successful,
organizations should have comprehensive policies and strategies for communicating with
their constituencies, employees and stakeholders as well as with the community at large.

Importance of Communication:
1. The Basis of Co-ordination: The manager explains to the employees the
organizational goals, modes of their achievement and also the interpersonal
relationships amongst them. This provides coordination between various employees
and also departments. Thus, communications act as a basis for coordination in the
organization.

2. Fluent Working: A manager coordinates the human and physical elements of an

organization to run it smoothly and e ciently. This coordination is not possible without
proper communication.

3. The Basis of Decision-Making: Proper communication provides information to the

manager that is useful for decision-making. No decisions could be taken in the
absence of information. Thus, communication is the basis for making the right
decisions.

4. Increases Managerial E ciency: The manager conveys the targets and issues
instructions and allocates jobs to the subordinates. All of these aspects involve
communication. Thus, communication is essential for the quick and e ective
performance of the managers and the entire organization.

5. Increases Cooperation and Organizational Peace: The two-way communication

process promotes cooperation and mutual understanding amongst the workers and
also between them and the management. This leads to less friction and thus leads to
industrial peace in the factory and e cient operations.

6. Boosts Morale of the Employees: Good communication helps the workers to adjust
to the physical and social aspects of work. It also improves good human relations in
the industry. An e cient system of communication enables the management to
motivate, in uence and satisfy the subordinates which in turn boosts their morale and
keeps them motivated. subordinates which in turn boosts their morale and keeps
them motivated.

Types of Communication:
Formal Communication: The communication in which information ows through proper
and pre-de ned solutions is referred to as Formal Communication. It follows a hierarchical
chain that is generally established by the organization itself. This type of communication
is a must in the workplace because employees are expected to follow formal
communication while performing their duties. Some general examples of formal
communication are reports, commands, orders, etc.

Informal Communication: Informal communication is multidimensional, it ows freely in

the organization without any restraint of prede ned channels or routes. It is comparatively
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very quick and relational. In organizations, it is often called the ‘grapevine’. It is also
important for the growth of a company because employees can discuss work-related
issues more openly which ultimately saves the company’s time and money. Some general
examples are - chats between team members, a private journal or diary, etc.

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Types of Formal Communication:
Vertical:

In this type of formal communication, information exchange takes place at di erent

organizational levels. Either the communication takes place from superior authority to
subordinate or vice-versa. It is also classi ed into two types:

• Bottom-up: Communication ow is from subordinate to superior authority.

• Top-down: Communication ow is from superior authority to subordinate.

Lateral or Horizontal:

This type of communication takes place between two employees of the same level but
working in di erent departments. For example, communication that takes place between
the Sales Manager and Human Resource Manager.

Diagonal or Crosswise:

This type of communication takes place between employees of di erent departments

working at di erent levels. For example, communication between Salesman and
Manufacturing manager.

Types of Informal Communication:

1. Single Strand Chain: The communication in which one person tells something to
another who again says something to another person and the process continues.

2. Cluster Chain: In this type of informal communication, one person tells something to
some of his friends then they circulate that among their close friends and the process
goes on.

3. Probability Chain: In this type, one person randomly chooses some persons and
transfers information to them and they also do the same later on.

4. Gossip Chain: This type of communication is very common in an organization, where

a person tells something to a group of people then they also spread it further to
another group of people till it gets passed to everyone.

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Process of Communication:
Communication is a dynamic process that begins with the conceptualizing of ideas by the
sender who then transmits the message through a channel to the receiver, who in turn
gives the feedback in the form of some message or signal within the given time frame.
Thus, there are seven major elements of the communication process:

1. Sender: The sender or the communicator is the person who initiates the conversation
and has conceptualized the idea that he intends to convey it to others.

2. Encoding: The sender begins with the encoding process wherein he uses certain
words or non-verbal methods such as symbols, signs, body gestures, etc. to translate
the information into a message. The sender’s knowledge, skills, perception,
background, competencies, etc. has a great impact on the success of the message.

3. Message: Once the encoding is nished, the sender gets the message that he
intends to convey. The message can be written, oral, symbolic or non-verbal such as
body gestures, silence, sighs, sounds, etc. or any other signal that triggers the
response of a receiver.

4. Communication Channel: The Sender chooses the medium through which he wants
to convey his message to the recipient. It must be selected carefully in order to make
the message e ective and correctly interpreted by the recipient. The choice of
medium depends on the interpersonal relationships between the sender and the
receiver and also on the urgency of the message being sent. Oral, virtual, written,
sound, gesture, etc. are some of the commonly used communication mediums.

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5. Receiver: The receiver is the person for whom the message is intended or targeted.
He tries to comprehend it in the best possible manner such that the communication
objective is attained. The degree to which the receiver decodes the message depends
on his knowledge of the subject matter, experience, trust and relationship with the
sender.

6. Decoding: Here, the receiver interprets the sender’s message and tries to understand
it in the best possible manner. E ective communication occurs only if the receiver
understands the message in exactly the same way as it was intended by the sender.

7. Feedback: Feedback is the nal step of the process that ensures the receiver has
received the message and interpreted it correctly as it was intended by the sender. It
increases the e ectiveness of the communication as it permits the sender to know the
e cacy of his message. The response of the receiver can be verbal or non-verbal.

Importance of Communication in HR:

For HR professionals, communication is a two-way process that involves top-down
dissemination of HR plans and bottom-up questions from employees. When
communication ows freely, employees enjoy a clear understanding of their bene ts,
while HR managers take in feedback on how e ectively HR programs are working.
1. Employee policies and procedures: Most workplaces make HR policies and
procedures readily available to employees. This information can be posted on the
company’s website, bulletin boards, in binders or through some other system.
Workers should especially be aware of information about hiring, ring, promotions and
performance evaluations.
2. Performance feedback: One of the most common reasons an employee may interact
with an HR professional is for routine evaluations. Ideally, an HR department has a
standardized approach to sharing this information, either electronically or in person.
Any system should be free of bias. If the feedback is seen as legitimate, employees
are more likely to see it as fair.
3. Onboarding: Onboarding involves teaching new hires about company policy. Beyond
work-related training, HR professionals often spend several days bringing new
employees up to speed on important policies.
4. Embrace two-way communication: E ective HR leaders listen to employee
feedback as readily as they communicate HR initiatives. One way HR personnel can
improve this two-way communication is to hold informal group meetings where
workers can ask questions or express concerns. This simple step shows workers that
their opinions are valued.
5. Make accessing HR information easy: File folders may not be the most inviting
means of storing details about HR policies, and distributing packets of HR materials
can leave new hires feeling overwhelmed. E ective HR departments make pertinent
HR documents readily available, often via an online portal.

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5.3 Counselling:
• Counselling is a talking therapy that allows people to discuss their problems with
trained professionals in a peaceful and safe ambience. It is the process where you talk
about your issues in detail either intending to overcome the same or to explore your
thoughts comprehensively. 

• Employee counselling is a method of understanding and helping individuals who have

technical, personal and emotional adjustment problems interfering with their work
performance.

• Employee Counselling is the most important tool for a supervisor who wants to improve
the performance and behaviour of employees. If performance problems persist even
after feedback and coaching which are other two important tools with a manager, one
may need to proceed to counsel.

• Counselling focuses on the problem, not the employee, and is positive and
constructive. Counselling is a formal straight, face-to-face conversation between a
supervisor and an employee concerning conduct, and performance. It is an e cient
means for a supervisor to have a positive e ect on employee performance.

• Employee Counselling takes place in the context of a helping relationship in which both
the counsellor and the employee work together to resolve a problem, change behaviour
or foster personal growth and awareness. The counselling relationship is con dential
and not reciprocal. The focus of a counsellor is to o er support and encouragement to
the employee.

Need for Employee Counselling:

1. The employees come out from the problems, and give a new way to deal with the
problems.
2. The employees need to know how much the employer care for the employee.
3. There is also a need to identify work-related problems and poor performance.
4. There is a need to increase the productivity of employees and their con dence in the
work.

The three basic ingredients of counselling:

1. Communication

2. Empowering, and

3. Helping.

Communication involves receiving messages (listening), giving messages (responding),

and giving fee back. The counsellor or the mentor does all these. The process of
empowering enables the other person to exercise more autonomy, providing positive
reinforcement so that the desired behaviour is further strengthened and creating
conditions in which the person is able to learn from the behaviour of the me tor. Finally,

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helping primarily involves the identi cation of the developmental needs of the person
being counselled so that he/she may be able to develop and increase his/her
e ectiveness.

Three Important Phases of Counselling:

1. Rapport Building: Initially the counsellor-manager should level himself with his
employee and tune himself to his orientation. General opening rituals like o ering a
chair, closing the door to indicate privacy, and asking the secretary not to disturb are
all important in demonstrating the manager’s genuine interest in employees’
problems. The counsellor must listen to the feelings and concerns of the employee
carefully and attentively. Leaning forward and eye contact is important signs of active
listening. The employee must feel that he is wanted and the counsellor is interested in
him genuinely.

2. Exploration: Besides active listening, the counsellor should help the employee nd
his own weaknesses and problems through open and exploring questions. He should
be encouraged to open up fully and talk more on the problem. This would enable both
parties to uncover various dimensions of the problem clearly. Once the key issue is
identi ed, (e.g., inability to get along with colleagues, not being promoted despite
hard work, the boss does not like his work etc.,) it should be diagnosed thoroughly.
Open questions like- why do people pick arguments with you? On what occasions did
you try to get ahead in the race? Who is coming in your way and why? — may help
the employee visualize the problem from di erent angles. The whole exercise is meant
to generate several alternative causes of a problem.

3. Action Planning: Counseling should nally help the employee nd alternative ways of
resolving a problem. The list of alternatives could be generated after two or three
brainstorming sessions. The merits and limitations of each course of action could also
be identi ed and the best course of action picked up keeping the background factors
(boss, colleagues, work-related issues, competitive pressures etc.) in mind. The
employee should be encouraged to self-monitor the action plan without seeking
further helps from the counsellor. The counselling sessions could be monitored and
reviewed at regular intervals later on.

Counselling Process:
1. Building a Warm Relationship 
2. Analysis
3. Setting the Goal
4. Plan of Action 
5. Overcoming the Problem 

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Types of Counselling:
• Mental Health Counselling

• Career Counselling 

• Rehabilitation Counselling 

• Relationship Counselling 

Bene ts of Employee Counselling:

1. It helps employees to tackle problems e ectively.
2. Employees are able to sort out their problems with ease.
3. Counselling Helps in taking correct decisions, be it personal or o cial.
4. Counselling gives a new way to look at the situation with a new perspective and
positive outlook.
5. It also May reduce the number of absenteeism of employees.
6. It may prevent termination from the employer or resignation from the employee.
7. It reduces the cost of hiring new employees and training new sta as an old sta is
retained.
8. It results in the possibility of smooth coordination between employer and employee.
9. It helps the individual to understand and help him/herself.
10. It provides Alternate solutions to problems.
11. Counselling helps in Coping with the situation and the stress.

5.4 Internal Mobility:

• Internal mobility, career mobility, or talent mobility are interchangeable terms often used
to the movement of talent between roles, and this can happen vertically and laterally.

• An internal mobility strategy takes this a few steps further by implementing a process
or framework for moving existing employees between roles, vertically and laterally.

• Internal mobility is the movement of employees (vertically and laterally) to new career
and development opportunities within the same organization. This includes promotions,
demotions, new positions, mentorships, cross-team or additional projects, job
shadowing, and job swaps.

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Importance of Internal Mobility:

Time and cost savings:
According to a Gallup report, it can cost one and a half times an employee’s salary to
replace them with an external candidate. This is especially true for roles that are in high
demand or require a great deal of skill and experience. In addition, a study has found that
internal hires outperform external hires during the rst two years of a promotion.

Internal mobility is the process of leveraging the talent you already have and avoiding the
need to go through the external recruitment process. Tasks like posting job ads, sifting
through high volumes of applications, and screening candidates are both time-consuming
and expensive, especially if your resources are already limited.

Improved employee retention:

According to LinkedIn’s Global Talent Trends report, employees are likely to stay 41%
longer with an organization that regularly hires from within. Furthermore, internal mobility
has a positive impact on employee engagement and productivity. According to a report
by Gartner, at organizations with greater internal mobility, employees are27% more likely
to go the extra mile at work.

A lack of career progression is one of the main reasons employees leave their jobs and
look elsewhere for opportunities. Therefore, if you can o er your sta career development
opportunities without them having to job hunt and risk their job security, they are much
more likely to stay.

Attracting new talent:

Aside from your existing employees, crafting a reputation as an organization that provides
employees with numerous opportunities for growth and development will help you attract

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talented, ambitious candidates from other organizations who bring a growth mindset with
them. 

Fostering a diverse and inclusive work environment:

Promoting and retaining talent from within is one of the best ways to foster a more diverse
and inclusive workforce. Facilitating internal mobility enables organizations to foster
diversity on all levels of the organization by training and upskilling existing talent. Some of
the most successful initiatives for this are cross-training and mentoring.

According to McKinsey’s report, businesses that rank in the top-quartile for gender
diversity amongst executive teams are 25% more likely to outperform on pro tability.
Plus, those who rank in the top quartile for ethnic diversity in their executive teams are
36% more likely to have industry-leading pro tability.

Skills development:
A strong internal mobility program provides employees with ample opportunities to upskill
and reskill and develop their experience and knowledge.

An example of this in practice is Spotify. They encourage all their employees to participate
in rotation programs coined as “missions,” which help develop and prepare their talent for
future job changes. No one has had the same job for more than two years, and they’re
upfront about this from the get-go. This keeps employees engaged, avoids stagnation,
and prevents the workers from jumping ship.

Timely ling of skills gaps:

Internal mobility also means that skills gaps can be lled promptly within your
organization, depending on your needs and organizational goals.

A Harvard Business School report shows that almost 60% of businesses prefer to borrow
people with certain skills from other companies rather than recruit full-time sta .
Therefore, job swapping and exchange programs within one organization could alleviate
the need to look elsewhere.

Enabling innovation:
Internal mobility is a catalyst for ideas owing with ease within the company, which leads
to more innovation. Unilever and Vodacom recently created a digital marketing exchange
program that helped provide new perspectives and spark ideas. This type of talent
mobility also o ered the employees a unique talent development opportunity, a key
ingredient to career enrichment.

5.5 Health and Safety:

• Health is the state of well-being. It not only includes physical well-being, but also
mental and emotional well-being. It is the responsibility of every employer to provide a
healthy work environment to his employees.

• Accidents cause personal injury or loss of life, damage of property, loss of production,
loss of man-hours, and heavy cost in replacement of faulty machines and also a loss to

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workers, employers and to the nation. This is a very serious problem to be solved. We
can control or reduce the above-mentioned losses if we can prevent the accidents.
Hence the need for safety is felt.

• Workplace health and safety is a fundamental issues. Employers should ensure that
their employees are working in a safe environment.

• Management systems and business owners are responsible for promoting workplace
health and safety. Employers should encourage employees to adopt safe practices and
use safety equipment.

Employee Health:
As per the factories Act 1948, Health provisions include:

• Cleanliness

• Disposal of wastes and e uents

• Ventilation and temperature

• Dust and fume

• Arti cial humidi cation

• Overcrowding

• Lighting

• Drinking water

• Latrines and urinals

• Spittoons

Employee Safety:
As per the factories Act 1948, safety provisions include:

• Fencing of machinery

• Work on or near machinery in motion

• Employment of young persons on dangerous machines

• Striking gear and devices for cutting o power

• Self-acting machines

• Casing of new machinery

• Prohibition of employment of women and children near cotton-openers

• Hoists and lifts

• Lifting machines, chains, ropes and lifting tackles

• Revolving machinery

• Protection of eyes

• Precautions against dangerous fumes, gases, etc.

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• Explosive or in ammable dust, gas, etc.

• Safety of buildings and machinery

Why is Employee Safety Important?

• Improving employee retention

• Creating a safe work environment to improve productivity

• Safeguarding company reputation in the eyes of customers, competitors, and the

general public.

Employee Safety Responsibilities:

• Provide workers with safety training and instruction

• Provide workers with PPE such as masks, gloves, glasses, etc.

• Create a safe working environment, provide safety equipment, and safety procedures

to protect workers.

• Set up adequate safety supervision

• Ensure workers do not endure mental and physical fatigue

• Ensure that work hours do not a ect worker safety and health

Retirement Bene ts:

• Pension

• Retirement Gratuity

• General Provident Fund and Incentives

• Contributory Provident Fund

• Leave Encashment

• Employees Group Insurance Scheme

• Health bene ts

• Insurance bene ts

• Membership bene ts

The following Employee Bene ts are more relevant and appreciated to

the workers based on Generation:
1. Millennials (1981-1996)
a) Most Important
i. Flexible working hours

ii. Paid leaves

iii. Health facilities

iv. Wellness of the employees

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v. Skill Re ning Programmes

vi. Pension Bene ts

vii. Healthcare
b) Most Appreciated
i. Flexible working hours

ii. Paid leaves

iii. Healthcare facilities

iv. Wellness of the employees

v. Skill Re ning Programmes

vi. Work-life balance

vii. Food and drinks

2. Generation X (1965-1980):
a) Most Important:

i. Fixed Working hours

ii. Overtime pay

iii. Paid leaves

iv. Healthy work culture

v. Pension bene ts

vi. Competent talent-enhancing programs

vii. Healthcare programs

b) Most Appreciated
i. Healthcare programs

ii. Fixed working hours

iii. Overtime pay

iv. Competent talent-enhancing programs

v. Healthy work culture

vi. Bene ts in the form of gifts, club parties, foods and beverages, activities, and
outings

3. Generation Z (1197-2012):
a) Most Important:

i. Leniency in working hours and working days

ii. Paid government leaves and monthly leaves

iii. Health-related support system

iv. Overall mastery programs/Upskilling with time

v. Mind-blowing pension bene ts

b) Most Appreciated

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i. Health-Related support system

ii. Leniency in working hours and working days

iii. Paid government leaves as well as monthly leaves

iv. Overall mastery programs/Upskilling with time

v. Financial wellness programs

vi. Mobility
4. Babyboomers:
a) Most Important

i. Pension bene ts

ii. Flexible working hours

iii. Health-related bene ts

iv. Healthcare

v. Insurance facilities

b) Most Appreciated

i. Health-related bene ts

ii. Flexible working hours

iii. Paid holidays

iv. Food and beverages

v. Skill enhancing programs

vi. Mobility

5.6 Lay-o :
Layo or “Cutback” signi es the refusal or lack of power to refuse, disappointment or
failure of a business by virtue of lack of coal, power or crude material, etc. or the
aggregation of stocks or the breakdown of apparatus to o er work to a workman whose
name is on the muster rolls of his industrial foundation and who has not been retrenched. 

Managing Complex layo s:

Complex layo s require advance discussion with Human Resources and detailed
planning. Learn the steps involved in preparing for, initiating, and managing complex
layo s.

Contact Human Resources

• When you need to manage a complex layo situation, your rst step is to contact your
HR consultant. They will make sure that:

• You have the information and support you need to develop and implement an e ective
sta reduction plan.

• The work of support functions and/or outplacement consultants is properly arranged

and coordinated.
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• You have a communication plan that will provide sta with information that is timely,
geared to their needs, and sensitive to the dynamics of the workplace.

• Layo seniority and employee job skills are properly considered to ensure that the
positions that need to be eliminated are correctly identi ed.

• You can assess organizational impacts by understanding where bumping can occur.

• Employees have the information they need about the options and resources available
to them.

• The layo process is properly administered.

Layo Preparation:
• For less complex layo s: as soon as you know layo s will be necessary, enter a
request to initiate a layo for each a ected employee into the layo request tool.

• Notify your HR consultant as soon as you become aware that you will face a complex
layo situation.

• Identify all positions that may be a ected. Review the job description and identify the
essential experience, skills, and/or knowledge that are necessary for each position.

• Evaluate how work assignments are structured and assess whether the current
structure most e ciently meets unit goals and objectives, including cyclic periods of
more intense work demands.

• Develop new or revised job descriptions that re ect the restructuring required by
reductions. Include essential knowledge, experience, and training.

• Utilize the services of your Human Resources Service Team and the Compensation
O ce to determine the job title/classi cation assignment for any new or revised
position. Ensure that your revised work con guration plan is consistent with your
budget.

Communication Planning:
• List all the individuals who need to know about the planned sta reductions and
develop a communication/noti cation schedule. Include senior management, business
partners or customers, directly a ected employees and other employees in the unit.

• Ensure that each a ected group receives timely communication.

• Anticipate any communication challenges or concerns and discuss them with your
HR consultant.

• Ensure the availability of appropriate decision-makers who can explain the rationale for
the reductions and who can respond authoritatively to employee questions or
concerns.

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5.7 Retrenchment:
• Retrenchment is one of the ways companies use to terminate employees when the
company is forced to downsize its number of employees. Subsidiary companies of
Multinational Corporations often resort to retrenchment to deal with their expenditure
on human resources. However, companies often fail to consider the legal requirements
to be carried out before retrenching their employees.

• Retrenchment meaning is terminating an employee due to the surplus of labour or

incapacity of employees to match the performance standards of the company. The
Industrial Dispute Act, of 1947 deals with employment-related disputes in India and
Section 2(oo) of the Act states that ‘retrenchment means termination of service of a
workman by an employer for any reason whatsoever, otherwise than as a punishment
in icted by way of disciplinary action. However, the following are not covered within the
meaning of employee retrenchment:

a) Voluntary retirement of a workman

b) Retirement of workmen on reaching the age of superannuation if the employment
agreement contains a provision regarding superannuation
c) Termination of service of a workman due to the nonrenewal of employment
agreement
d) Termination on grounds of continued ill-health

5.8 Employee Welfare:

Welfare includes anything that is done for the comfort and improvement of employees
and is provided over and above the wages. Welfare helps in keeping the morale and
motivation of the employees high so as to retain the employees for a longer duration.

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Objectives of Employee Welfare:

• To provide better life and health to the workers

• To make the workers happy and satis ed

• To relieve workers from industrial fatigue and to improve intellectual, cultural and
material conditions of living of the workers.

Features of Employee Welfare:

• Employee welfare is provided voluntarily by the organization to express its interest in
the general well-being of the employees.

• It is usually provided over and above the statutory and contractual obligations of the
organization towards workforce compensation.

• The objectives and strategies of the organization provide a broad outline for
determining its employee welfare policies.

• Since employee welfare measures are not linked to the performance of the employees,
they have a direct and proportionate impact on the pro ts of the organization.

• Employee welfare measures look to enhance the mental, physical, intellectual and
moral well-being of the employees.

• They extend beyond the job and organization to take care of even the personal life of
the employees.

• Employee welfare is an ongoing process and not a one-time activity of the organization.

• Employee welfare measures are normally started during the good times of the
organization.

• Employees, employers, trade unions and the government are the stakeholders of
employee welfare measures.

Employee Welfare Bene ts Schemes:

Some of the Employee Welfare Laws in India 

• Factories Act, 1948

• Maternity Bene t Act, 1961 (with latest amendments)

• Employee State Insurance Act, ESI 1948

• Employee’s Provident Fund Scheme, 1952

• Payment of Bonus Act, 1965

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